Title Insurance

Title Insurance Services

American Abstract Company writes title insurance policies based on a strong relationship with several title insurance companies aimed at insuring and guaranteeing ownership and marketability of property.

What is title insurance?

A title insurance policy is available to home buyers that insures the title, or ownership, to the property is without defect, and is marketable. This affordable insurance lets you rest easy knowing that the land records of the County have been searched for liens and judgments, an attorney has examined the records relating to your property, and any requirements have been fulfilled. The title is clear upon purchase and there is an insurance policy to back it up.

How does title insurance differ from other types of insurance?

Title insurance protects the insured from future losses arising out of events that happened in the past.

What does Title Insurance do?

Title insurance gives buyers the peace of mind knowing that any defects to the title have been fulfilled, and any unknown defects such as a fraudulent or forged document, invalid conveyance, or impersonation will not result in financial loss to you. Your ownership will be defended promptly against claims, at no cost to you, whether the claim is valid or not.

Are there several types of title insurance?

Yes. There are three types of title policies. The first one is the owner’s policy, which the buyer would need for his or her protection. The second one is the lender’s policy (mortgagee’s policy), which only protects the lender. A majority of the lending institutions require a lender’s policy for each real estate loan. Additional coverage is available through an “Eagle” policy.

Who are the Title Insurance Underwriters?

American Abstract Company uses American Eagle Title Insurance Company, American Security Title Insurance Company, First American Title Insurance Company and Fidelity National Title Insurance Company. The strong relationship with these companies allows American Abstract Company to provide solid services backed by financially strong reputable companies.

How to order title insurance – Upon request to our company for a Title Policy, the following information may be required:

Type of Policy (Owner’s or Mortgagee’s)

Who is to pay the expenses

Property Description – Full Description in Section, Township and Range or Subdivision and Lot & Block (Alternatively, a copy of the Deed to the current owner)

Seller (Borrower) information, including spouse name, address, and phone number

Buyer information, including spouse name, address, and phone number

Lender name, address, and phone number, if applicable

Amount of loan, if applicable

What fees are associated with title insurance, and who is responsible for paying these?

There are four steps necessary to get to the point of issuing a title policy (whether owner’s, lender’s or leasehold). The four steps are as follows:

Initial abstracting to update abstract for title examination;

Title examination by an attorney to produce a title commitment;

Final search to show recorded documents from closing;

Collection of title insurance premium.

Each of the first three above-referenced steps has a fee associated with it, and the party who pays for each of these is determined by the real estate contract.

How much are the annual premiums?

There are no annual premiums. The premium is calculated based on the sales price or the mortgage amount, and it is a one-time charge for the life of the policy.

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